Here's Who To Invest In If The GOP Wins Big In November

Let's say the Republicans take everything in November, what will
it mean for your portfolio? This is an easy call to make.
Expect a dramatic roll back of the leftward policies the country
has adopted over the last two years, and a sudden revival of the
industries that have suffered as a result. In fact, if you look
at the charts below, many of the stocks I am suggesting have
already started to discount a conservative win.

Big oil companies will be huge winners. American oil imports from
the Middle East will accelerate, where the industry earns 80% of
its profits. That will bring peak oil sooner, easily taking crude
over $100/barrel quickly, and eventually to $150 or $200.
Restrictions on both onshore and offshore drilling will get
rolled back to their Bush era laissez faire levels, cutting costs
and boosting profitability. You want to own Chevron (CVX),
ExxonMobile (XOM), Conoco Phillips (COP), and of course, BP (BP).
The drilling and service companies, like Transocean (RIG) and
Diamond Offshore (DO), should do spectacularly well.

Coal will benefit immensely from relaxed environmental
regulation, paving the way for more exports to China. You want to
own Peabody Energy (BTU) and Joy Global (JOYG). Nuclear Energy is
a big beneficiary here, which should drive you into Shaw Group
(SHAW) and top uranium producer Cameco (CCJ). Forget about
natural gas companies, like Chesapeake Energy (CHK) and Devon
Energy (DVN). Relaxed environmental controls will stonewall
restrictions on the new fracking technology that is unleashing
huge supplies on the market, driving prices for CH4 to the
basement.

You can count on subsidies for alternative energy to get axed as
unaffordable luxuries, which have created 500,000 jobs in
California alone in the past two years. After all, global warming
is nothing more than a leftist hoax, right? The good news is that
the higher oil prices Republican policies
are guaranteed to bring means that green companies of every
stripe will become profitable in their own right, making
subsidies unnecessary. Remember, Bush policies took crude from
$20/barrel to $150, topping up the Strategic Petroleum Reserve at
the absolute top. Buy First Solar (FSLR) on the knee jerk sell
off after the election.

The Republican portfolio should also have
a heavy weighting in defense companies, as an expanded war
against terrorism means we will be fighting more wars in more
places for longer. Any shopping list should include Northrop
Grumman (NOC) and General Dynamics (GD). Also prospering mightily
will be the makers of prosthetic limbs for the military, like
Zimmer Holdings (ZMH).

Health care is a natural. It is unlikely that we could see a
complete abolition of Obama care until 2016 at the earliest. But
a Republican win in the House would
eliminate the possibility of any expansion of socialized
medicine. Health care companies like United Health (UNH), Humana
(HUM), and Pfizer (PFE) will do well.

The government's war on for profit education will grind to a
complete halt (click here for my last piece). With a tidal
wave of government subsidized loans to the industry assured, and
hapless students stuck with the bill, companies like DeVry (DV),
Strayer Education (STRA), and Corinthian Colleges (COCO) will
rocket.

Major tax cuts for the top 2% of income earners costing $700
billion over ten years and more loopholes for corporations pared
with increased defense spending promise to send deficits through
the roof. That will last bring an end to the 30 year bull market
in Treasury bonds, which are teetering as I write this. The
double short Treasury ETF (TBT) and the triple short (TMV) will
have to be a core holding in any long term portfolio.

As the two parties are diametrically and violently opposed to
each other on virtually every issue, the impact of a regime
change on the economy and the markets promises to be huge. I
could write on this for days, so these are just the high points.